Minnesota Hospital Registered Nurse Loan Forgiveness Guidelines

The purpose of Minnesota’s Health Care Loan Forgiveness program is to recruit and retain health care professionals to needed areas and facilities within Minnesota. Loan forgiveness is an important benefit for health care professionals as well as health care facilities and communities experiencing a shortage of access to primary health care services.

The Office of Rural Health and Primary Care (ORHPC), Minnesota Department of Health administers this program. It is funded by the State of Minnesota. Program eligibility requirements and benefits are established by state statute, 144.1501 authorizing the health professional education loan forgiveness program. 

This program is offered to registered nurses working in direct patient care in Minnesota nonprofit hospitals and Minnesota public hospitals. Outpatient surgical centers and clinics associated with hospitals are not eligible. Current nursing students who will be licensed and working by March following the application deadline are also eligible to apply. A prospective participant must submit an application to ORHPC during the open application cycle.

The Minnesota Hospital Registered Nurse Loan Forgiveness program provides funds for repayment of Qualified Educational Loans. Qualified Educational Loans include government, commercial, and foundation loans for actual costs paid for tuition, reasonable education and living expenses related to the past graduate or undergraduate education of the Registered Nurse.

Ineligible loans:

• Credit card debt
• Loans from family members
• Parent PLUS loans
• Loans currently in default, even if in good standing with a collections agency (Previously defaulted loans that have been fully rehabilitated and are not currently in default, ARE eligible).

Applicants must have at least $6,000 in eligible debt to qualify.

This is a competitive selection process. Select applications will be reviewed by an independent panel of reviewers. Preference will be given to applicants who document diverse cultural competencies as well as those who are nearest to completion of their RN training. The number of applicants ORHPC may select for participation per year varies and is contingent upon state funding.

Participants are required to practice as a registered nurse in a Minnesota nonprofit hospital or Minnesota public hospital for a minimum of two years. Participants must begin their service obligation under this program no later than March 2025 following selection. Participants must complete their nursing program as originally stated in their application. 

Selected participants shall provide direct patient care hours for at least 30 hours per week for at least 45 weeks per year. Hours cannot be fulfilled in supervising, administrative duties, billing, policy development or administering programs. Telehealth work is not eligible. Participants must live and work in Minnesota. Participants are eligible to participate for two years of loan forgiveness. The ORHPC will make an annual payment to the participant in the amount of $6,000, not to exceed $12,000 total for the maximum of two years or the balance of the designated loan(s), whichever is less, subject to the availability of funds appropriated by the Minnesota State Legislature for the loan forgiveness program.